When the several banks are waver under high levels of loan defaults, rural lenders are showing how to rein in bad loans. Andhra Pradesh Grameena Vikas Bank
reduced net non-performing assets (NPAs) or bad loans to 1.40 % in fiscal year
2015-16 from 2.3 2% in the previous year, by employing the Sarfaesi Act
. According to the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (SARFAESI) banks can seize and auction the properties of
willful defaulters to recover loans. V Narasi Reddy (Bank Chairman) said by auctioning willful defaulters properties online we are able to
reduce our NPAs. We have
been organising awareness camps among farmers to encourage them for prompt
payment and have been making use of Lok Adalats to resolve disputes and arrive
at a compromise. The bank's net profit increased
nearly 11% to INR 223.47 Crores in 2015-16. Advances increased by about 17% to INR 1,536.16 Crores and deposits grew 23% to INR 1,922.11 Crores. Overall business
grew nearly 20% to INR 3,458 Crores.

The Bank opened 23
branches in 2015-16 also plans to open another 50 branches this fiscal year. Digital transactions for the Bank increased 62 % through Rupay cards, Mobile and Internet banking in the last two years.